Lufax Holding Stakes its Claim on a Brighter Future: Strong Governance, Regulatory Readiness, and Focus on Customer Value
In a significant milestone for the company, Lufax Holding recently concluded its second quarter 2026 earnings call, marking the first investor conference call in almost two years. This marks a key step towards normalizing reporting cadence for the company.
During the call, Mr. Zhi Xiang, Director and CEO of Lufax Holding, provided an update on recent developments and strategies in the business. He also shared details on financial performance and operational updates. The company's Head of the Board Office and Capital Markets, Ms. Xinyan Liu, began the call by thanking investors for joining them and referring to the safe harbor statement in their earnings press release.
Mr. Zhi Xiang emphasized that restoring Lufax Holding's financial reporting and strengthening governance were top priorities. The company has successfully completed re-audits for 2022, 2023, and published audits for 2024 and 2025, thus bringing SEC periodical filings current and regaining compliance with the New York Stock Exchange continued listing standards.
Additional measures include engaging Deloitte Consulting (Shanghai) Co., Ltd. as an independent internal control consultant to review and enhance internal controls. The company has also implemented remedial measures based on Deloitte's recommendations, restructured its board to ensure a majority of independent non-executive directors, and established the position of Chief Compliance Officer.
In discussing macroeconomic trends, Mr. Zhi Xiang noted that China's economic growth continued to moderate in Q2 with GDP growing 4.3% year-over-year. The operating environment for small businesses remained challenging, and financing demand was weak. Consumer finance demand also declined, with household consumer loan balances dropping 1.7% year-over-year as of June.
The regulatory landscape has become more stringent, covering a range of guidelines such as collection practices, data security, and personal information protection. Oversight now extends across the value chain from pricing to risk management and post-loan operations. Industry margins are narrowing due to continuous interest rate compression and fee transparency requirements, making it less sustainable for companies with high risks offsetting by high fees.
Despite near-term pressure on growth and profitability, Lufax Holding believes that these tightened regulations will support healthier competition and provide a competitive advantage for top players with proper licenses and compliance mechanisms. As the company looks to deliver long-term value to its shareholders, it remains committed to strengthening internal controls through new initiatives and cultivating a strong compliance culture.
